The most likely source of the proposals of selling business is the companies – business brokers specializing in the sale of companies.
Entrepreneurs wishing to sell their business can put ads in newspapers of free poster or poster in the department of lowercase local periodicals, and any other business-books, trade publications or newsletters, specialized web sites.
We should not forget that the seller does not always dare to report the sale by announcing it publicly.
The reason for this is the need to observe the strict regime of confidentiality, as announcement about the sale could cause unrest among employees and suppliers. Many potential sellers prefer to use a net of personal contacts to find buyers. This means that you need to make inquiries among friends, acquaintances, employers, lawyers, bank employees, accountants, consultants and colleagues. You should also ask suppliers or distributors, working in the business you’re interested in. Tell them what you want to buy business, ask to tell you all the information the possibilities that they know.
Once you found out about that the particular business is on sale, talk directly with the owner and discuss the possible conditions of sale.
Finding a potential seller, you need to know exactly what is sold, and to determine exactly how much must be paid.
The first step is to determine why the business is sold. They can readily tell you the cause designated by the seller, but this cause wills not necessarily be the real reason for sale. Try to find out what is really happening – talk to other people having information about the business that you intend to buy.
Price of business is directly dependent on the ability of the business to generate income. Evaluation of existing enterprise is called the valuation of the business under the existing use.
The real value of the business depends on income that it brings. You need to see the history of the company’s revenues for several years. This will allow determining the total income, expenses and profits. By investing money in the purchase, you actually buy an annual profit. One way of evaluating the possible purchase – is valuation of investment efficiency.
Determining the actual value of this business, you should not limit yourself to consideration of a list of assets proposed by the seller or his views on how to evaluate this business.
Your researches should begin with the requirements of the financial statements for the past three years. Who prepared this data? Has an audit been there? Even if the financial reports are certified by auditors, do not forget that the auditors’ decisions depend on the documents they provided. For formal statements, signed by an accountant, a lot of other information may be hiding.
The best way to get acquainted with the affairs – is to attend the office within a few days and with your own eyes to see how this mechanism works. Typically, after such a check a potential buyer has the opportunity to get real information about the present business.
Business is a dream for many people. But nowadays business has become not only a kind of activities and occupation – it has turned into the article of trade. It is not a rare case today when someone buys and sells businesses just to earn money on it. Whereas another part of businessmen sells their businesses because of some troubles or inability to conduct it any more. In any case when selling a business it is better to address to experts who deal with it. And here business for sale site can be of much help because there one can learn much details related with this process. Those who live in Canada are advised to visit toronto business for sale or vancouver business for sale experts.
And keep in mind that before dealing with any issue it is wise to investigate it. And today it is quite easy to do as web technologies give a nice opportunity to find anything you need.